PetroChina Mulls $85 Billion Spinoff

PetroChina may be considering a spinoff for its oil and gas pipeline business, which could be worth as much as $85 billion, according to investment analysts. The suggestion has been sparked by expectations that China’s largest oil producer will report its worst financial figures in history, and by energy industry reforms being drafted by the central government. The network spans across China, from the west to the east, supplying crude oil and natural gas to all major cities in the country. Its total length is 48,200 miles, of which more than 65 percent is natural gas pipelines. As a whole, PetroChina is the biggest oil and gas pipeline operator in China, with a 71-percent market share. Back in 2015, Bloomberg recalls, the Chinese government had plans to take the pipeline business away from PetroChina and peer Sinopec, and unite them into a separate company. These plans have been dropped, […]